Gold eyes further downside below $1,800
Although oversold RSI conditions placate gold bears around $1,790, a sustained trading below the $1,800 threshold joins expected further recovery in the US dollar to challenge the upside momentum. However, the quote’s further declines will have to break a descending trend line from mid-January, at $1,772 now, to revisit the November 2020 low near $1,765. On a fundamental side, anticipated recovery in the US Retail Sales during January and the FOMC minutes may also exert downside pressure on the bullion.
Though, any disappointment will not be taken lightly ahead of the US covid relief stimulus and hence can recall the $1,800 round-figure to the chart. Following that, the $1,830 and the monthly resistance line, around $1,844, can entertain gold buyers before pushing them to the 200-bar SMA near $1,853. During the bullion’s sustained run-up beyond $1,853, the monthly horizontal resistance near $1,875 becomes the key hurdle to watch.
Though, any disappointment will not be taken lightly ahead of the US covid relief stimulus and hence can recall the $1,800 round-figure to the chart. Following that, the $1,830 and the monthly resistance line, around $1,844, can entertain gold buyers before pushing them to the 200-bar SMA near $1,853. During the bullion’s sustained run-up beyond $1,853, the monthly horizontal resistance near $1,875 becomes the key hurdle to watch.